Data management is a necessary part of a company’s digital strategy but is especially important for online retailers who may have a huge amount of data in different places. Getting and managing the right information for product catalogs is not only time-consuming but it is also difficult to be fully sure this data will meet the quality standards necessary to keep each sale from becoming a return. As this data becomes product information and content that must answer customers’ questions, fulfill their desires, and lead to sales, better data makes all the difference.
This is why, in 2024, data management hubs are becoming increasingly popular. Data management hubs are designed to give companies of all sizes the tools to succeed in e-commerce, measured by more efficient processes with lower costs and greater effectiveness that can increase customer satisfaction. With the right system, SMEs can turn product data from a challenge into a primary business asset.
For businesses looking to improve or grow their e-commerce segment, reduce costs, and increase sales, upgrading their data management system is a smart place to start. With that being said, here are five things every business should look for when using a Data Management Hub
1. Easy-to-use
Product managers, data analysts, inventory managers, and eCommerce specialists all have reasons to access product data, but most likely they have vastly different levels of experience. Consistent use of a system depends on having a straightforward, intuitive design. A user-friendly system encourages frequent use which leads to timely updates, more oversight, and less chance that errors or absences make it to your e-commerce marketplace. Plus your IT department will love you.
2. Data integrity
When using a Data Management Hub, data is imported into a single system where it can be viewed and verified. In disparate data silos, inconsistencies, inaccuracies and duplicates between data sets are harder to spot. Since sales and marketing depend directly on the accuracy and completeness of product information, strengthening data integrity through a centralized system directly impacts your bottom line.
3. Customizable controls
Data Management Hubs offer a balance between quality control for format and structure within the system as well as the flexibility to customize the data to exact requirements. Businesses want a system that allows them to import and export data in any file format – XML, JSON, CSV – and that ensures consistency within a well-defined structure. In addition, it is vital that this data can be synchronized across different platforms.
4. On-the-spot communication
Full communication in any Data Management Hub can allow teams to meet at the point of reference and have direct access to all data, tickets and communication/update records. Sharing live systems makes group sessions more productive overall. By supporting rapid communication, a Data Management Hub speeds up decision-making so people can get back to business.
5. Complete Coverage
The next essential feature of a Data Management Hub is coverage. Studies show that missing and inaccurate product information leads 49% of consumers not to purchase a given product or choose another — even if it has a higher price. A data management hub should not only be able to process the full range of data types but also explicitly deliver customers’ product requirements. This includes currently available data but also additional product data that might be required in the future. Data must include product images, product data sheets, videos, product texts, and translations and it should be immediately available and easy to integrate into your system.
According to Gartner, poor data quality costs companies in all industries an average of $12.9 million every year. Bad data is information in a dataset that is incorrect, incomplete, outdated, or irrelevant. It is an inaccurate set of information that can cause widespread damage. On the other hand, high-quality data from a Data Management Hub can reduce the return rate, help offer products that delight customers and ensure there are no unanswered questions that can prevent a purchase.
As industries continue to rapidly change, having data that is current has become a crucial factor in helping businesses stay competitive. Data Management Hubs relieve a lot of this work and can dramatically increase overall efficiency. As a result, they continue to take on growing significance and are likely to be one of the key e-commerce trends we see this year.
Leslie Gray is Head of Communication at ContentFactory1, a global eCommerce solutions company.
